As of 02/03/2023
  Indus: 33,926 -127.93 -0.4%  
  Trans: 15,518 -122.49 -0.8%  
  Utils: 954 -22.84 -2.3%  
  Nasdaq: 12,007 -193.87 -1.6%  
  S&P 500: 4,136 -43.28 -1.0%  
YTD
 +2.3%  
 +15.9%  
-1.4%  
 +14.7%  
 +7.7%  
  Targets    Overview: 02/01/2023  
  Up arrow35,100 or 33,150 by 02/15/2023
  Up arrow16,000 or 14,350 by 02/15/2023
  Up arrow1,040 or 950 by 02/15/2023
  Up arrow12,400 or 11,000 by 02/15/2023
  Up arrow4,250 or 3,900 by 02/15/2023
As of 02/03/2023
  Indus: 33,926 -127.93 -0.4%  
  Trans: 15,518 -122.49 -0.8%  
  Utils: 954 -22.84 -2.3%  
  Nasdaq: 12,007 -193.87 -1.6%  
  S&P 500: 4,136 -43.28 -1.0%  
YTD
 +2.3%  
 +15.9%  
-1.4%  
 +14.7%  
 +7.7%  
  Targets    Overview: 02/01/2023  
  Up arrow35,100 or 33,150 by 02/15/2023
  Up arrow16,000 or 14,350 by 02/15/2023
  Up arrow1,040 or 950 by 02/15/2023
  Up arrow12,400 or 11,000 by 02/15/2023
  Up arrow4,250 or 3,900 by 02/15/2023

Bulkowski's Top 10 Reversal and Continuation Chart Patterns

Statistics updated 7/7/2022 to agree with the results found during research of the book, Encyclopedia of Chart Patterns, 3rd Edition.

Top 10 Reversals and Continuations: Summary

The following are the top 10 performing chart reversal and continuation patterns. A complete list of chart patterns for both bull and bear markets is available in an Excel spreadsheet by clicking here.

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My book, Encyclopedia of Chart Patterns, 3rd edition, takes an in-depth look at 76 chart and event patterns, including performance statistics.

If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.

-- Tom Bulkowski

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Top 10 Reversals, Upward Breakout, Bull Market

The following covers the top ten reversal performers in bull markets only.

In most cases, a reversal pattern has price entering and exiting the chart pattern from the top. In other words, an inbound downtrend changes (reverses) into an uptrend after the upward breakout. With some patterns, like a bump-and-run reversal bottom, the price trend within the chart pattern is long enough that I consider it a downward move. When an upward breakout follows, it reverses that downtrend.

Chart patternAverage Rise
Rounded top61%
Bump-and-run reversal bottom55%
Double bottom, Eve & Eve50%
Scallop, descending and inverted49%
Broadening formation, right-angled and ascending47%
Head-and-shoulders bottom, complex47%
Rounded bottom47%
Scallop, inverted and ascending47%
Big W46%
Rectangle bottom46%

Top 10 Continuations, Upward Breakouts, Bull Markets

Continuation patterns with upward breakouts have price entering the chart pattern from the bottom and exiting out the top. A list of the top 10 performers follows.

Chart PatternAverage Rise
Cup with handle54%
Rounded top51%
Three rising valleys51%
Rectangle top51%
Rounded bottom48%
Diamond bottom47%
Scallop inverted and ascending45%
Scallop inverted and descending44%
Ascending triangle43%
Ascending scallop42%

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Top 10 Reversals, Downward Breakouts, Bull Market

These reversal patterns have price entering the pattern from the bottom and exiting the chart pattern out the bottom, too. With a bump-and-reversal top, they are long enough that the price trend is upward within the chart pattern, so I consider a downward breakout as a reversal.

Chart PatternAverage Decline
V top extended18%
Diamond top17%
Big M17%
Bump-and-run reversal top17%
Head-and-shoulders top, complex17%
Rounded top16%
Cup with handle, inverted16%
Roof16%
Double top, Adam & Eve16%
Double top, Eve & Eve16%

Top 10 Continuations, Downward Breakouts, Bull Market

Shown in the next table are the top 10 continuation patterns with downward breakouts in a bull market.

Chart PatternAverage Decline
Broadening top20%
Rounded top19%
Diamond bottom19%
V top extended19%
Scallop, ascending18%
Diamond top18%
Cup with handle, inverted18%
Broadening formation, right-angled and descending17%
Descending triangle17%
Scallop, descending and inverted16%

Notes:

The average rise and decline are for hundreds of 'perfect trades' without commissions or fees deducted. Each reversal or continuation measures from the opening price the day after the breakout to the ultimate high (upward breakout) or low price (downward breakout). The ultimate high is the highest high before price drops by at least 20%. The ultimate low is the lowest low before price rises by at least 20%. Other restrictions apply, but you get the idea.

-- Thomas Bulkowski

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See Also

 

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My novels:  Remember Me book Bumper's Story book Head's Law book
My stock market books:  Chart Patterns: After the Buy Getting Started in Chart Patterns 2nd edition book Trading Basics book Fundamental Analysis and Position Trading book Swing and Day Trading book Encyclopedia of Chart Patterns 3rd Edition book

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